Like Frosty the Snowman
(no one within the organization with YDD smokes, but are just providing a potential to stock investments and we are providing information about what is going on in the world. No judgements made, just hopes to invest for yourself.)
This article was originally published on ETFTrends.com.
Like Frosty the Snowman, ETFMG Alternative Harvest ETF (MJ) investors have to be feeling like jolly old souls with the latest news from two of its holdings, Tilray (Nasdaq GS: TLRY) and Canopy Growth (CGC) .
Tilray gained over 10 percent on Thursday after it announced a research partnership with Budweiser maker Anheuser-Busch (BUD) on Wednesday. The joint venture will include a $50 million investment in the research of beverages infused with tetrahydrocannabinol (THC) and cannabidiol (CBD).
The deal comes just after Tilray announced a partnership with pharmaceutical giant Novartis AG to facilitate global supply and distribution for medical marijuana.
“For us, it’s early days in this industry and research feels like the right place to start,” said Tilray Chief Executive Brendan Kennedy. “At Tilray, we’ve been performing research and develop for almost five years on lots of different aspects of cannabis and cannabinoid delivery.”
MJ’s other holding, Canopy Growth, gained almost 6 percent after hours on Thursday after it announced that it will “participate in the American market” given the recent signing of the 2018 Farm Bill. The bill consists of a 5-year, $867 million funding towards farming initiatives.
More importantly, the bill eases federal restrictions on cannabis by removing hemp from the Controlled Substances Act.
“Canopy Growth commends the United States government for passing the Farm Bill, a transformative piece of legislation that will create jobs and meaningful economic impact across the United States,” said Canopy CEO Bruce Linton.
Related: Marijuana ETF Boosted by Altria, Cronos Cannabis Rumor
Second Marijuana ETF in the Works
MJ may not be the only ETF on the market that caters to the marijuana industry in the U.S. capital markets for much longer as Innovation Shares LLC recently filed with the Securities and Exchange Commission to launch the Innovation Shares Cannabis ETF. The filing couldn’t be more auspicious as recent regulatory changes have been paving the way for more marijuana usage whether it’s medical or recreational.
According to the Innovation Shares filing, the ETF will be based on a proprietary index that tracks “the performance of a portfolio of exchange listed common stock of companies in primarily the United States and Canada that have a business interest in to the legal cannabis, hemp or CBD-based (i.e., products that contain cannabidiol) pharmaceutical and consumer wellness & product markets. A company has a business interest in the legal cannabis, hemp or CBD-based pharmaceutical and consumer wellness & product markets if a significant percentage of its revenues are growing.
Furthermore, companies for inclusion in the index are “screened to not include stocks that have a market capitalization below $100 million. Constituents must also have traded at least 200,000 shares during the month of reconstitution. At the time of monthly reconstitution, the Index constituents are weighted according to their market capitalization with the individual weight of an index constituent capped at seven percent (7.00%), with the excess weighting proportionately distributed between the remaining constituents.”
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Last and foremost we are not a stock trading firm am we have seen losses with Tilray and their moves as of late. This is not a get rich scheme and lets hope they recover.
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